Chic Lumber’s Warrenton location is a home center situated in the county seat of Warren County. The store is open seven days a week and is a full retail lumber and hardware center and includes The Gun Room, which sells firearms, ammunition and accessories as well as fishing and hunting permits.
The company’s Wentzville facility operates as Wentzville Millwork where custom millwork, interior door units and countertops are manufactured.
All-together, Chic Lumber employs 60 staff members including an outside sales force of four kitchen and bath designers, two millwork and window specialists, and six sales pros who focus on lumber and building materials.
“They sell everything, but we categorize them as lumber salesmen,” Hendrix said. “That group of people probably covers 80% of our sales. The other 20% is a mix of retail.”
Annual revenues for the three locations have remained steady, despite the Midwest’s slower growth in housing starts compared to other regions in the country.
Perhaps more impressive is the fact that Chic Lumber’s profits haven’t fallen prey to the big box stores in the market. When Hendrix says “in the market,” he means “pretty much everywhere.”
“We have a Menards, Lowe’s and Home Depot in O’Fallon and Wentzville. There are no big boxes in Warrenton, but they’re only 15 miles away. We’re absolutely surrounded, at every exit around here.”
Focus on Remodelers
As the big boxes moved in on Chic Lumber’s sales territory, Adam and his father began focusing on the custom homebuilder.
“That became our core business right up to the recession,” he said.
But like most LBM dealers, the recession changed the Chic Lumber model. Now, Chic Lumber focuses more attention on the remodeler customer.
“We’re not giving up on builder business, but our growth is focused on professional remodelers,” Hendrix said. “They’ve proven to be more recession-proof.”
Hendrix said that professional remodelers are a great fit for his business. “Our focus is beyond the guys with one pickup truck,” he said. “We’re looking at the remodelers with storefronts and offices. Those are the 20% who do 80% of the business.”
